Broadcasting Decision CRTC 2015-162 PDF version Reference: Part 1 application posted on 22 July 2014 Ottawa, 27 April 2015 MZ Media Inc. Toronto, Ontario Application 2014-0647-1 CFZM Toronto – New nested FM transmitter in Toronto The Commission approves the application by MZ Media Inc. to operate a nested FM transmitter in downtown Toronto to rebroadcast the programming of its English-language commercial AM radio station CFZM Toronto. In the Commission’s view, by implementing this authorization, the licensee will enable listeners in the downtown core of Toronto to receive an improved signal with FM audio quality. A dissenting opinion by Commissioner Raj Shoan is attached to this decision. Application 1. MZ Media Inc. (MZ Media) filed an application to operate a nested FM transmitter1 in downtown Toronto, Ontario, in order to rebroadcast the programming of its English-language commercial AM radio station CFZM Toronto. 2. MZ Media is also the licensee of the English-language specialty radio stations CFMZ-FM Toronto, CFMX-FM Cobourg and CFMO-FM Collingwood. 3. The transmitter would operate at 96.7 MHz (channel 244) with an average effective radiated power (ERP) of 22.4 watts (maximum ERP of 82 watts with an effective height of antenna above average terrain of 280.1 metres).2 4. MZ Media stated that the proposed transmitter is necessary to improve the reception quality of CFZM’s signal in downtown Toronto. The licensee indicated that the station’s signal is severely impaired by electrical interference from streetcars, and from blockage from high-rise buildings, bridges, viaducts and portable wireless electronic devices, including cell phones that interfere with AM signals within 1 A nested transmitter is a transmitter located within the coverage contours of the original station to supplement coverage to an area experiencing reduced signal strength. 2 MZ Media originally proposed an average ERP of 27.3 watts (maximum ERP of 100 watts) for the transmitter. However, the licensee revised the technical parameters of the proposed transmitter in order to comply with the Department of Industry’s protection requirements towards existing incumbent stations. buildings. It provided engineering studies and listener testimony as evidence that reception is unreliable and inadequate in downtown Toronto. 5. MZ Media further stated that there would be no changes to CFZM’s programming, and that the operation of the proposed transmitter would not have a negative impact on radio stations currently operating in the market. 6. Finally, the licensee indicated that severe degradation of CFZM’s coverage in Toronto’s core has eroded the station’s revenues. It stated that should the Commission deny the application, the station would no longer be viable. 7. The Commission received an intervention in opposition to this application from an individual, to which the licensee replied. The public record for this application is available on the Commission’s website at www.crtc.gc.ca or by using the application number provided above. Issues 8. After examining the public record for this application in light of applicable regulations and policies, the Commission considers that the issues it must address are the following: • whether the licensee has demonstrated a compelling technical or economic need for the proposed transmitter; • whether the licensee’s proposal constitutes an appropriate technical solution; • whether the proposed transmitter represents an appropriate use of radio spectrum; and • whether approval of the application would have an undue financial impact on incumbent radio stations. Compelling technical or economic need 9. When a licensee of a radio station files an application for a technical change, including the addition of a transmitter, the Commission expects the licensee to present compelling technical or economic evidence that the existing technical parameters are not adequate to provide the service as originally proposed. Accordingly, the Commission has examined both the technical and economic need for the proposed transmitter. Technical need 10. To demonstrate technical need, MZ Media provided a field strength measurement, audio recordings taken in various locations in downtown Toronto, and the results of listener reception surveys regarding the station’s signal reception problems. It also included older technical studies conducted by the Department of Industry (the Department) in February 1997 and by the Canadian Broadcasting Corporation (CBC) in March 1995 to assess the signal quality of CBL Toronto, the station that had previously operated on CFZM’s current frequency of 740 kHz, at the same power and from the same transmission site.3 The CBC study concluded that the CBL radio coverage was inadequate. The study by the Department, which covered six radio stations in Toronto (four AM and two FM), concluded in part that CBL had “a fair signal” in areas where the signals of the other stations were good to excellent. 11. To indicate that CFZM’s signal reception continued to deteriorate in Toronto, MZ Media compared its field strength measurements with points that were part of the Department’s 1997 technical study. This comparison showed that the strongest decline in signal reception was in the downtown core. In addition, MZ Media provided a map with field strength measurements showing signal degradation in downtown Toronto. 12. In light of the above, the Commission finds that MZ Media has demonstrated a compelling technical need to mitigate reception issues in Toronto’s downtown area. Economic need 13. MZ Media stated that CFZM’s revenues are eroding due to the significant signal issues within the core of the Toronto radio market. According to financial projections that it provided to the Commission, operation of the proposed transmitter would allow CFZM to reverse the decline in total revenues. The licensee submitted that should its request be denied, the station’s revenues would continue to decline, ultimately leading to a situation where the station is no longer viable. 14. In light of CFZM’s financial performance, the licensee’s financial projections for the station, and the risk that the station would not be viable without the requested technical change, the Commission finds that MZ Media has demonstrated a compelling economic need for the proposed transmitter. Appropriateness of the proposed technical solution 15. In its application, MZ Media proposed the “nested” transmitter as the only option to resolve CFZM’s signal reception problems. As this transmitter would operate on frequency 96.7 MHz, it would be second adjacent to MZ Media’s own station CFMZ-FM, which operates on frequency 96.3 MHz. The licensee indicated that the proposed transmitter would also be co-located in downtown Toronto with CFMZ-FM, which would serve to minimize interference problems between the second adjacent transmitters. 3 Following CBL’s conversion to the FM band, approved by the Commission in Decision 97-362, CFZM was awarded the frequency 740 kHz in Decision 2000-205. Intervention 16. The individual intervener submitted that the use of frequency 96.7 MHz for the new transmitter may be a “bad idea” given that the radio station CKHC-FM Toronto, a campus radio station licensed to Humber Communications Community Corporation, is currently transmitting on the first adjacent frequency 96.9 MHz. The intervener argued that due to the overcrowded FM broadcast band in Toronto, there are “virtually hardly any open frequencies available,” and stated that the licensee should instead use either of frequencies 91.5 MHz or 101.7 MHz for the proposed transmitter. Reply 17. In reply, MZ Media indicated that the use of the proposed frequency complies with the requirements of the Department, and that the proposed technical parameters protect CKHC-FM in accordance with those requirements. 18. In regard to the options presented by the intervener, MZ Media cited an engineering study by its consulting engineer, which indicated that the proposed frequency is the only viable frequency that can be used for the proposed transmitter. Further, the licensee described how the frequencies proposed by the intervener could not be used, mainly due to protection requirements to incumbent second adjacent radio stations. Commission’s analysis 19. The Commission generally authorizes the addition of a rebroadcasting transmitter to correct clearly demonstrated technical problems within a radio station’s licensed service area. 20. In the present case, the primary service contour of the proposed transmitter would encompass the area where signal reception problems are most frequent (i.e., downtown Toronto). Further, the service area of the proposed transmitter would be contained within the very large primary service contour for CFZM, which encompasses, in addition to the Greater Toronto Area, a large part of the Golden Horseshoe. 21. Further, the Commission notes that MZ Media has maximized the proposed technical parameters for the frequency 96.7 MHz, especially in consideration of the protection requirements for the incumbent co-channel stations CHYM-FM Kitchener and CJWV-FM Peterborough, and the first adjacent radio station CKHC-FM. 22. In the Commission’s view, given the protection criteria to adjacent stations, MZ Media would not be able to increase, in a noticeable manner, the service footprint of the proposed FM rebroadcasting transmitter over CFZM in the foreseeable future. 23. In light of the above, the Commission finds that the technical solution proposed by MZ Media is appropriate to address CFZM’s signal problems. Appropriate use of spectrum 24. The Commission is mindful of the scarcity of spectrum in the Toronto radio market, and notes that there are no FM allotments available in that city. Accordingly, in addition to the evidence provided as proof of technical or economic need, the Commission has considered whether the proposal would represent an appropriate use of the spectrum for that radio market. 25. The proposed frequency 96.7 MHz is second adjacent to that on which CFMZ-FM operates, 96.3 MHz. Pursuant to the rules and procedures established by the Department,4 the use of frequency 96.7 MHz requires consent from CFMZ-FM.